So i read this.....

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    You have to have a formal agreement between you that the income from your joint property is to be split differently to the ownership percentage.
    Ideally it should be in writing.
    If the arrangement is a total fiction HMRC may challenge it, but are very unlikely to do so for the amount of tax you're going to save.

    There are lots of different ways to do what you're trying to do - written agreement, trust, actual partnership, limited company.

    You have to consider the consequences if the property was ever either of your main home, expenses are split in line with income (which can affect mortgage reliefs) - there's not a simple one size suits all answer.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


      Originally posted by jpkeates View Post

      If the arrangement is a total fiction HMRC may challenge it, but are very unlikely to do so for the amount of tax you're going to save.
      Having just spent 18-months argueing with HMRC about which department approx. £2,000.00 worth of tax was to be paid to. I would say be very cautious. To be clear, they didn't argue the amount of tax just which department it had to be paid to. ' IHT' wanted the £2k as did 'Capital Gains'.
      There is always scope for misinterpretation.

      If my posts can be interpreted in two ways, one that makes you feel angry and one that doesn't, I meant the latter.

      Everyday is an opportunity to learn something new.


        Many thanks

        So the best I can do for now is 50:50 joint ownership (to satisfy the lender), and then myself/partner would have various CGT ad SDLT implications

        What would be the tax to pay in this scenario please:

        - Transfer 50% equity to my partner on a BTL which cost me £205k, now worth £225k, mortgage remaining is £148k, and she already jointly owns another property.
        - I pay 40% tax, she doesn't work, we're not married.

        And then the same scenario if we were married?

        What other info do you need please?


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